Some people feel that the cardboard end caps on some Fram filters are OK.
However, I would think that the oil is able to bypass the filter element and sneak around the edges of the cardboard end caps and back out through the center port.
There are just way too many competent filters on the market to justify putting up with crap.
Update: Looking at the photos again, it appears that the anti-drainback valve on the bottom and the over-pressure valve on the top prevent the oil from doing an end-run around the cardboard end caps.
The filters still are crap IMO.